The moderating role of organizational context on the relationship between innovation and firm performance

D. De Clercq; N. Thongpapanl; D. Dimov

doi:10.1109/TEM.2010.2048911

The moderating role of organizational context on the relationship between innovation and firm performance

D. De Clercq, N. Thongpapanl, D. Dimov

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Abstract

This study examines how two cross-functional conditions (decision autonomy and trust) and a key managerial attitude toward the organization (organizational commitment), both individually and collectively, act as catalysts of the firms ability to convert its innovation pursuits into performance outcomes. An analysis of the performance of 232 firms offers support for the hypothesized interaction effects. The positive relationship between innovation and firm performance is stronger for higher levels of decision autonomy, trust, and organizational commitment. In addition, consistent with a systems approach to organizational contingencies, the contribution of innovation to firm performance is stronger when the firms context comes closer to an ideal configuration of these three factors. The authors discuss the studys implications, limitations, and directions for further research.

Original language	English
Pages (from-to)	431-444
Number of pages	14
Journal	IEEE Transactions on Engineering Management
Volume	58
Issue number	3
DOIs	https://doi.org/10.1109/TEM.2010.2048911
Publication status	Published - 1 Aug 2011

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The moderating role of organizational context on the relationship between innovation and firm performance

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